814 replies to this topic

[shelddy]

Whats the take on MTA's trading statement...

HEPS expected to be 20% lower due to auto strike and the mutlu acquisition.

Results only coming out March 2014 ... any idea what price movements are we going to see before then?

[Zero Hedge]

But it is also important to understand why the discount exists in first place...REI is an investment trust and for now the share price doesn't reflect the value of the underlying investments (ie. the BAT stake and some other PE investments etc) for following reasons: leakage (tax and corp costs), no pass through of the BAT dividend and then of cause the exorbitant management fee REI pays to Ruperts for managing the portfolio of assets. For the discount to narrow the aforementioned issues needs to be addressed first. The pass through of BAT dividend to REI investors and a smaller management fee (as the whole performance of REI is still driven by BAT share price so how much value do they really add to deserve such exorbitant management fees?) looks like obvious choices!

[HendrikB]

Can someone please explain how it is that by buying REI you get BAT at a discount? Sorry if it seems an elementary question.

Reinet is currently far below its NAV(Net Asset Value). Reinet has a 73% stake in BAT. Thus, buying Reinet equals BAT equals discount. Note however that Reinet has been below its NAV for some time so theres no guarantee that Reinet's share price will reach its intrinsic value.

[michaessers]

Can someone please explain how it is that by buying REI you get BAT at a discount? Sorry if it seems an elementary question.

[gamma]

Fair enough. And I suppose they could always do a deal or two which might further increase their value.

 

Reinet has a 73% stake in BAT.  So with Reinet you get BAT and the discount its trading at.

If you go with BAT then you're buying at 3% discount, but you get the dividend.  Reinet is a non-dividend paying share,

although this might change early next year.

 

 

Correct major holding is BAT but point is the discount to NAV at >30% is too big, especially given the fact that stocks like RMH and RMI are actually on premiums to NAV. But REI management will have to take action to narrow the discount...they should consider reducing the management fee or actually passing BAT dividend through to shareholders which would be nice! Time will tell but I agree the stock should reward the patient investor.

[HendrikB]

Reinet has a 73% stake in BAT.  So with Reinet you get BAT and the discount its trading at.

If you go with BAT then you're buying at 3% discount, but you get the dividend.  Reinet is a non-dividend paying share,

although this might change early next year.

[Zero Hedge]

Correct major holding is BAT but point is the discount to NAV at >30% is too big, especially given the fact that stocks like RMH and RMI are actually on premiums to NAV. But REI management will have to take action to narrow the discount...they should consider reducing the management fee or actually passing BAT dividend through to shareholders which would be nice! Time will tell but I agree the stock should reward the patient investor.

[gamma]

I see so many people on this forum looking for a quick buck, but if there's one share for the long haul that's

looking like real value at the moment its Reinet.  Got hammered today, but it trades almost 30% to its NAV.

One for the bottom drawer.

 

Isn't their major holding really just BAT? In which case...why not just own BAT?

What do you see as the investment case?

[HendrikB]

I see so many people on this forum looking for a quick buck, but if there's one share for the long haul that's

looking like real value at the moment its Reinet.  Got hammered today, but it trades almost 30% to its NAV.

One for the bottom drawer.

[gamma]

Woolies was down almost 10 perc month to date as at close yesterday Was way oversold and lagged massively vs rest of sector...plus market expecting decent sales update out of them next week. VOD short covering by foreign macro funds post decent set of interim results earlier in week.

 

good call on woolies btw. not sure batman heard it though 

[Zero Hedge]

Woolies was down almost 10 perc month to date as at close yesterday Was way oversold and lagged massively vs rest of sector...plus market expecting decent sales update out of them next week. VOD short covering by foreign macro funds post decent set of interim results earlier in week.

[newbie]

Could anyone explain the jumps in Voda and WHL today for me please?

[hexadecimal]

Any views on WHL, TKG and VOD for a long today? Maybe SHF as well?

Good Call ...  hope you chose these!!

[davidp13]

Sorry, wrong forum.

[davidp13]

Any views on WHL, TKG and VOD for a long today? Maybe SHF as well?

[AJS]

@AJS

And then a question for all of you: Assuming that you accumulate actual stock and not CFDs in you long term portfolios (AND you guys trade), how/where did you start with investing as oppose to only trading.   Did you for instance inherit millions and just went and bought stock or did you for instance buy 100 SOL here and 50 SAB there and another 100 VOD here as you went along every month or so?

 

That's exactly how I started. What I learnt was buying costs ate into the weighted price of the counter I was buying. To mitigate that I set up a rigid debit system & bought every 3-4mts. Benefits well you know phasing in, buying dips etc..... Time in the market is paying off for me now. 

I also enjoy my trading but I can't devote the time required to be constantly successful at it. I hope to change that someday, first grow a pair I keep telling myself

 

 

 

Thanks for the feedback soutie, appreciated!

[orca]

You don't need to sell your long term holdings to lock in profit and risk your 'CGT status'. Rather use a short hedge using CFDs, options or Warrants etc.

I have a SAFEX account to do just that but cannot go short on CML as I just don't know if it will carry on up. If it does, I gain nothing. If it tanks, I gain nothing. So unless I am sure that it WILL tank, I would go short. So at this stage I cannot do anything.

[soutie]

@AJS

And then a question for all of you: Assuming that you accumulate actual stock and not CFDs in you long term portfolios (AND you guys trade), how/where did you start with investing as oppose to only trading.   Did you for instance inherit millions and just went and bought stock or did you for instance buy 100 SOL here and 50 SAB there and another 100 VOD here as you went along every month or so?

 

That's exactly how I started. What I learnt was buying costs ate into the weighted price of the counter I was buying. To mitigate that I set up a rigid debit system & bought every 3-4mts. Benefits well you know phasing in, buying dips etc..... Time in the market is paying off for me now. 

I also enjoy my trading but I can't devote the time required to be constantly successful at it. I hope to change that someday, first grow a pair I keep telling myself

 

 

[gamma]

Now don't do what I did. Locking in profits. Never again will I do that. Your gains are now subjected to Revenue and you will be taxed on it as revenue. Not CGT. So now you must add your gains to your other income. Hope you held them for 3 years at least. That way it is CGT.

 

You don't need to sell your long term holdings to lock in profit and risk your 'CGT status'. Rather use a short hedge using CFDs, options or Warrants etc.

[delta66]

Hi AJS, my trading account is roughly 8-10% of my LT portfolio worth.  have been deliberating on increasing that figure to around 20% as trading CFD's has become far more profitable/enjoyable than my holdings long term.

in terms of exposure rates(CFD) i never commit more than 50% of my gearing.  example..if your margin account is 1M my maximum geared exposure whether trading single/multiple instruments would be 5M cumulative.